Futures tracking the S&P/TSX Composite Index rose on Friday following the release of Canadian employment figures and a key US jobs report. Canada’s unemployment rate inched down 0.1 percentage point to 6.4%, slightly better than expectations of 6.5%, while employment surged by 75,000, far exceeding the projected 15,000 gain. In contrast, the US economy unexpectedly lost 23,000 jobs, against forecasts for an 80,000 increase. The combination of robust Canadian labor data and softer US employment conditions reduced the risk of a more hawkish stance from the Federal Reserve, while strengthening the case for a potential Bank of Canada rate hike, particularly if elevated energy prices persist.
At the same time, oil prices were volatile as markets weighed the outcome of Iran-Oman negotiations, easing concerns about energy-driven inflation and lending support to financial stocks and the broader index. Gold prices also advanced as expectations for additional US rate hikes diminished, providing a further boost to mining shares.
